Stock of the Day

August 1, 2022

Teck Resources (TECK)

$41.12
-$2.24 (-5.2%)
Market Cap: $21.63B

About Teck Resources

Teck Resources Limited engages in exploring for, acquiring, developing, and producing natural resources in Asia, Europe, and North America. The company operates through Steelmaking Coal, Copper, Zinc, and Energy segments. Its principal products include copper, zinc, steelmaking coal, and blended bitumen. The company also produces lead, silver, and molybdenum; and various specialty and other metals, chemicals, and fertilizers. In addition, it explores for gold. The company was formerly known as Teck Cominco Limited and changed its name to Teck Resources Limited in April 2009. The company was founded in 1913 and is headquartered in Vancouver, Canada.

Teck Resources Bull Case

Here are some ways that investors could benefit from investing in Teck Resources Limited:

  • Teck Resources Limited has a consensus rating of "Moderate Buy" from analysts, indicating positive sentiment towards the stock's future performance.
  • The current stock price is $43.39, which is relatively close to its fifty-two week high of $55.13, suggesting potential for price appreciation.
  • Institutional investors own 78.06% of the company's stock, which often indicates confidence in the company's stability and growth prospects.
  • The company has a solid current ratio of 2.92, indicating it has more than enough short-term assets to cover its short-term liabilities, which is a sign of financial health.
  • Teck Resources Limited operates in multiple segments, including Steelmaking Coal, Copper, Zinc, and Energy, providing diversification that can mitigate risks associated with reliance on a single commodity.

Teck Resources Bear Case

Investors should be bearish about investing in Teck Resources Limited for these reasons:

  • Deutsche Bank recently downgraded Teck Resources Limited from a "buy" to a "hold" rating, which may reflect concerns about the stock's near-term performance.
  • The company has a high price-to-earnings (P/E) ratio of 65.74, suggesting that the stock may be overvalued compared to its earnings, which could deter value-focused investors.
  • Teck Resources Limited has recently cut its dividend, which may signal financial strain or a shift in strategy that could concern income-focused investors.
  • The stock has experienced volatility, with a recent trading down of 2.1%, indicating potential instability in the market perception of the company.
  • With a beta of 1.05, the stock is slightly more volatile than the market, which could pose additional risk for investors looking for stable investments.

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